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Organizational Preparedness & Grant ReadinessTHE D-SOURCE TOOLKIT

Our Company Values

INTEGRITY OPPORTUNITY PARTNERSHIPS

KEYSTOSUCCESS!

Grant WritingFunder

Matchmaking

Organizational Foundation

Organizational Foundation

WHY?YOUR ORGANIZATION’S FOUNDATION BEGINS HERE

What brought you to life?

What are your strengths?

Where do you add value?

How will you measure success?

Determining Readiness

Defined community needClearly established mission and

vision Proactive Budgeting 501(c)3 tax exemption Ability to demonstrate success Local, State and Federal

reporting requirements

Elements of a Stable

Organization

MISSION VISIONVALUES

CHOOSING THE BEST OPTION FOR YOUR ORGANIZATION

501 (C) 3 Pros

Grant Eligibility

Formal Structure

Limited Liability

Cons COST

Paperwork

Shared Control

Public Interest

PARTNERS/FISCAL SPONSORS Pros

Seeking Grants and Qualifying for Funding

Solicit Tax-Deductible Donations

Professional/Experienced Project Support

Cons Difficult to find

Similar Vision/Mission

Competition

Sponsor has ultimate control of the project

Consistent Tracking

Record KeepingPre & Post Surveys

Local, State, & Federal Reporting

ANNUAL REPORTING ANNUAL 990 OR 990 EZ

MICHIGAN ANNUAL REPORT

CHARITABLE SOLICITATION REGISTRATION

Fundamentals

ORGANIZATIONAL FOUNDATION

FUNDER MATCHMAKING

GRANT WRITING

Funder Matchmaking

Of what happens during the grant-making process is beyond your control

50%?

?Understanding What’s IN your Control

Finding the RIGHT Funders!

UNDERSTANDING FUNDER/GRANTEE RELATIONSHIPS

KNOWING WHERE TO FIND YOUR FUNDERS UNDERSTANDING FUNDER PRIORITIES SUCCESSFULLY APPROACHING PROGRAM

OFFICERS

25%

“Your Funders Should Be Just As Passionate About Your Values as You Are”

Fundamentals


FUNDER MATCHMAKING

GRANT WRITING

Grant Writing

High-Quality Grant Writing/Proposal Development

ARTICULATING YOUR GOALS SHOWCASING YOUR STRENGTHS POSITIONING YOUR WEAKNESSES USING RESEARCH TO YOUR ADVANTAGE PACKAGING THE PROPOSAL

25%

Quality Grant Professionals

Ethics (https://www.grantprofessionals.org/) Help with finding the RIGHT funders Understanding the Grantmaking ProcessWRITING GREAT GRANTS

https://www.grantprofessionals.org/

Fundamentals


FUNDER MATCHMAKING

GRANT WRITING

Thank You!Wendy Caldwell-Liddell

[email protected]

Fundraising &Fund Development

A Brief Overview of Fundraising Methods and Fund Development Key Insights

KEITH CRISPEN, PRINCIPALThe Crispen Group

• Born in Detroit, MI

• Business Management ‘11, WSU Mike Ilitch School of Business

• Corporate Finance ‘11, WSU Mike Ilitch School of Business

• Community Development ‘17, UDM School of Architecture

• President of Detroit Young Professionals

• Development Director of AIGA Detroit

• $19.2 Million in startup capital since 2009

• $4.85 Million in nonprofit funding since 2011

COVERAGE SUMMARYFundraising

• Types of Fundraising

• Events

• Other Fundraising Options

Fund Development

• Programmatic Alignment

• Relationships & Strategic Alliances

• Partnerships & MOUs

• Organizational Efficacy

• 3 Types of Organizations

FUNDRAISING

• What is Fundraising?

• Why is it important?

• Restricted vs. Non-Restricted Funds

• Laws, Rules, Regulations

TYPES OF FUNDRAISING

• Individual Support• Corporate Support• Digital Campaigns• Direct Mail (Annual Giving, Memberships)• Earned Income• Grants• Major Gifts• Gift Matching• Events

TYPES OF EVENTS

• Competitions

• Runs/Walks (i.e. for a cause)

• Auctions

• Gala/Party

• Art Exhibit

• Sporting Event

• Concert

• A-thon Event

OTHER FUNDRAISING OPTIONS

• Offer Text-to-Give

• Host a Crowdfunding Campaign

• Host a Silent Auction

• Offer a Donation Upgrade Incentive

FUND DEVELOPMENT

• What is Fund Development?


• Restricted vs. Non-Restricted Funds

• Laws, Rules, Regulations

RELATIONSHIPS & STRATEGIC ALLIANCES

• 3 Types of Organizations

• Which are you? (More than 1 category may apply)

• Who are your competitors?

• Who are your potential strategic allies?

• Fiduciary vs. Partner

• Purpose of a Fiduciary?

• Purpose of a Partner?

PARTNERSHIPS & MOUs

• Purpose of Partnership?

• What is an MOU? Why is it important?

• Partner identification (i.e. ‘fit’)

• Process chronology

ORGANIZATIONAL EFFICACY

• What is Organizational Efficacy?


• How to articulate it? (Means & Methods)

• How to collect the data?

• What kinds of data to collect?

• How does ROI fit into it all?

• What is ROI?

• Why is it important to have clear-cut ROI?

3 TYPES OF NONPROFIT ORGANIZATIONS

• What are the 3 types of nonprofit organizations?

• Which are you? Which would you like to be?

• How does that define your partners?

• How does that define your competitors?

• Examples of each type

THANK YOU!

CONTACT INFO

E-MAIL: [email protected]

mailto:[email protected]

Classification: Internal Use FOR INTERNAL USE ONLY.

How do I get my bank to fund me?

May 9, 2018

Jason Paulateer

Objectives

40

Upon completion of this session, you should:

• Understand CRA better

• Types of “CRA Dollars”

• “CRA Dollars” Contacts


CRA Dollars: What is CRA Anyway?

Community Reinvestment Act (CRA)

42

• The Community Reinvestment Act (CRA) is aUnited States federal law designed to encouragecommercial banks and savings associations tohelp meet the needs of borrowers in all segmentsof their communities, including low- andmoderate-income neighborhoods.

• Congress passed the Act in 1977 to reducediscriminatory credit practices against low-income neighborhoods, a practice known asredlining.

Presenter

Presentation Notes

Encourage banks and thrifts to help meet the credit needs of their entire communities Including borrowers of different income levels and businesses/farms of different sizes Including low- and moderate-income neighborhoods, certain non-metropolitan middle income geographies or designated disaster areas Consistent with safe and sound operations While we are held accountable to CRA as a regulation, investing in the community is part of our DNA at PNC. We have adopted the montra in Community Development that PNC is an acrostic reflecting People, Neighborhoods and Communities. The regulators review us on a three year cycle and our most recent rating was OUTSTANDING. In fact, we have received an outstanding rating since 1998. We’ve never received anything less than a High Satisfactory rating. Low-Income is gross income of less than 50% of the area median income Moderate-income is a gross income of less than 80% of the area median income LMI is roughly 35% of the population Approximately 85% of our LMI lending is to existing PNC customers New customers represent 15% of our LMI lending, of which 72% open DDA’s

Classification: Internal Use43

The CRA was passed to discourage redlining, a practice originally based on Home Owners' Loan Corporation"residential security maps," like this 1937 security map of Detroit.

Presenter

Presentation Notes

Prior to the passage of the CRA Act in 1977,

http://en.wikipedia.org/wiki/Redlining

http://en.wikipedia.org/wiki/Home_Owners'_Loan_Corporation

The House You Live In

44

45

Low- and Moderate-Income (LMI)

Heart of the City Health Center, Grand Rapids

• Low-income = an individual income, or tract income, that is less than 50% of the AMI

• Moderate-income = an individual income, or tract income, that is at least 50% and less than 80% of the AMI

• Middle-income = an individual income, or tract income, that is at least 80% of AMI but less than 120% of AMI

• Upper-income = an individual income, or tract income, that is equal to or greater than 120% of AMI

Classification: Internal Use

What is “CRA Qualified”?

46

What constitutes a “CRA qualified” CD activity is specifically defined. There are several wonderful things financial institutions do to support communities that do not qualify for CRA credit.

For all financial institutions, there is a focus in seeking to obtain CD loans, services or investments.


What is “Community Development”?

47

Community Development is an important concept in Intermediate Small Bank and Large Bank evaluations. In order to receive CRA credit, a bank’s activities must have one of the following as its primary purpose:


Community Development Activities

• Affordable housing

• Economic development

• Community services

• Revitalize or stabilize LMI geographies

• Neighborhood Stabilization Program

(NSP) Activities

8

Presenter

Presentation Notes

Affordable housing for low- or moderate-income (LMI) individuals Community services for LMI individuals Activities that promote economic development by providing financing for small businesses or small farms Activities that revitalize or stabilize LMI geographies, distressed or underserved non-metro middle-income areas, or designated disaster areas Activities that support, enable or facilitate projects or activities that meet “eligible uses” criteria described in Section 2301(c) of the Housing and Economic Recovery Act of 2008 (HERA) and are conducted in designated target areas identified in plans approved by HUD in accordance with the Neighborhood Stabilization Program (NSP)


Exam Types

49

• Small bank

• Intermediate small bank (ISB)

• Large bank

• Wholesale and Limited Purpose

• Strategic Plan

Presenter

Presentation Notes

Small Banks with assets under $290 million Loan to deposit ratio Lending in and out of the assessment area Distribution of loans by geography Distribution of loans by borrower income Responses to complaints Intermediate Small Banks with assets of at least $290 million and less $1.16 billion Evaluated under the traditional small bank lending test PLUS a community development test CD activities should be responsive to community needs Large Banks have Assets of $1.16 billion or more Exam criteria: Lending Investments Services


Overall Ratings (Grades)

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• Outstanding

• Satisfactory

• Needs to Improve

• Substantial Noncompliance


Who Are the Regulators?

51

• Federal Reserve Bank (FRB)• Regulates all bank holding companies, financial

housing companies and state chartered member banks

• Office of the Comptroller of the Currency

(OCC)• Regulates banks with a national charter

• Federal Deposit Insurance Corporation

(FDIC)• Regulates non-Federal Reserve member state

chartered bank

Presenter

Presentation Notes

The CRA requires that each insured depository institution's record in helping meet the credit needs of its entire community be evaluated periodically. That record is taken into account in considering an institution's application for deposit facilities, including mergers and acquisitions (See CRA Ratings). CRA examinations (see Exam Schedules) are conducted by the federal agencies that are responsible for supervising depository institutions: the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).


Regulators – but not for CRA

52

•National Credit Union Association (NCUA)

Regulates credit unions – not subject to CRA

•Consumer Financial Protection Bureau (CFPB)

Regulates banks larger than $10B for many consumer protection regulations, not CRA


CRA Dollars

53

• Loans

• Equity Investments

• Giving• Grants• Sponsorships• Service


CRA Dollars

Lending $$ Investment $$ Grant $$ Sponsorship $$

Money Follows, It Does Not Lead

55

Presenter

Presentation Notes

Adapted from Dan Gilbert’s Book, ISM’s in Action (Read pg. 93 in his book)…


CRA Dollars: Community Development Loan and Investment

(Equity) Dollars

6 C’s of Credit

Community Impact

Capacity

Character

Collateral

Capital

Conditions

57

Funding Demystified

920 Cherry, Grand Rapids

Presenter

Presentation Notes

Funding continues to be driven by the 5 C’s of Credit. The major difference is that virtually no bank is financing speculative projects. The developer/organization needs to have the necessary cash flow to support whatever debt that it is attempting to borrow, before the project is completed. The developer/organization should have some “cash on hand” to support the project should they run into hiccups now or in the future. The developer/organization should have a proven track record of doing what it is that they are attempting to do. The developer/organization must have adequate collateral to support the request at whatever parameters have been set forth by the financial partner. The market conditions should make sense now or have strong future support for developing the prospective project. Community Development Investments: To stimulate community and economic revitalization, PNC provides a wide range of investments supporting nonprofits, community loan funds, community development credit unions and developers of affordable housing. Through strategic investments, we provide non-traditional capital to high-impact development projects and to community organizations that directly impact neighborhood vitality. Types of investments include: Low Income Housing Tax Credits Federal Historic Tax Credits New Markets Tax Credits Venture Funds/Private Equity Funds Charitable Investments

58

Community Impact

• Does your project qualify for CRA credit?• Is it in a low- or moderate-income census

tract?• Does this project help to stabilize or revitalize

the community?• What is the level of jobs that will be created

by/at the project?• Is it affordable housing?

• How many units of housing will be created?

Capacity/Cash Flow

59

• What is your organization's borrowing history and track record of repayment?

• How much debt can your organization handle?

• Will you be able to honor the obligation and repay the debt?

• There are numerous financial benchmarks such as debt and liquidity ratios that banks use before advancing funds.

Character

60

Banks want to “put” their money with clients

who have the best credentials and references.

The way you treat your employees and

customers, the way you take responsibility, your

timeliness in fulfilling obligations - that's

character.

Cornerstone Estates, Detroit

Collateral

61

• While cash flow will nearly always be the primary source of repayment of a loan, bankers often look at what they call a secondary source of repayment.

• Collateral represents assets that the company pledges as an alternate repayment source for the loan. Hard assets.

• Collateral can come in the form of real estate and office or manufacturing equipment.

• Your accounts receivable and inventory can also be pledged as collateral.

Capital

62

• How well capitalized is your organization?

• How much money have you invested/reinvested in the organization?

63

Conditions

• What are the current economic conditions and how does your organization fit in?

• If your organization is sensitive to economic downturns, the bank wants to know that you are good at managing productivity and expenses.

Heart of the City Health Center, Grand Rapids

Inside Baseball

64


CRA Dollars: Time, Talent and Treasure

May 9, 2019

Money Follows, It Does Not Lead

66

Presenter

Presentation Notes

The Community Reinvestment Act is intended to encourage depository institutions to help meet the credit needs of the communities in which they operate, including low- and moderate-income neighborhoods, consistent with safe and sound banking operations.


CRA Dollars: Time, Talent and Treasure

67

• Time & Talent• Community Development Service

• Talent• Sponsorship with CD Service Component

• Treasure• Foundation/Corporate Grant funding

Presenter

Presentation Notes

Organizations must be non-profit/for impact as opposed to for profit organizations.


Examples of Community Development Services

68

• Providing technical assistance on financial matters to non-profit, tribal or governmental organizations serving LMI housing or economic revitalization and development needs

• Serving on the board or committee of an organization facilitating affordable housing construction and rehabilitation or development of affordable housing

• Developing and teaching financial education classes for LMI individuals


What is LMI?

69

FY 2014 Very Low-Income (50%) Limit (VLIL)MedianFamily Income

1 Person

2 Person

3 Person

4 Person

5 Person

6 Person

7 Person

8 Person

60,400 21,150 24,150 27,200 30,200 32,600 35,050 37,450 39,850

FY 2014 Extremely Low-Income (30%) Limit (ELIL)1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person

12,700 14,500 16,300 18,100 19,550 21,000 22,450 23,900

FY 2014 Low-Income (80%) Limit (LIL)

1 Person 2 Person 3 Person 4 Person 5 Person 6 Person 7 Person 8 Person

33,800 38,650 43,500 48,300 52,200 56,050 59,900 63,800

Presenter

Presentation Notes

Low-income means an individual income that is less than 50% of the area median income Moderate-income means an individual income that is between 50% - 80% of the area median income


CRA Dollars: Grant and Sponsorship $$$

May 18, 2017

Classification: Internal Use71

Understanding the process is key to creating a win-win for

all to fully utilize the CRA resources available to fund

your project or event.

Grant and Sponsorship $$$

Presenter

Presentation Notes

It is intentional that this slide looks like too much information. You want to convey the message that understanding the process and relationship building is the key to creating a win-win for all to utilize the available CRA resources to fund your project or event.


Grant and Sponsorship $$$

72

• Understand the Funding Priorities

• Sustainable and Measurable

• Clear and Concise Goals

Presenter

Presentation Notes

Anne: you will want to focus the following points: Never submit an unsolicited request – with all of today’s wonderful technology, building relationships are key to understanding the funding priorities of the grantor to be sure your request aligns


CRA Dollars

Lending $$ Investment $$ Grant $$ Sponsorship $$


Questions

74

75

Jason L. Paulateer, Senior Vice President

Market Manager – North RegionFifth Third Community and Economic Development

Phone: (313) 230-9774Email: [email protected]

Contact Information

mailto:[email protected]


Appendix


Resources

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• Interagency Questions & Answers on Community Reinvestment March 11, 2010 http://www.ffiec.gov/cra/pdf/2010-4903.pdf

• Supplemental Interagency Procedures http://www.ffiec.gov/cra/examinations.htm#EX_PROCEDURES

– Intermediate Small Bank issued in 2005– Small Bank, Large Bank, Limited Purpose, and Strategic Plan

issued in 2006• OCC Large Bank Examiner Guidance, December 2000• OCC Bulletin 97-26 Performance Context• Supervisory Agency Community Affairs Departments• http://www.ffiec.gov: HMDA data, CRA data, geocoding/mapping

system, rate spread calculator, links to CRA Performance Evaluations

• http://www.fdic.gov: Deposit market share data, list of branches, Bank Call Reports

• http://www.bls.gov: Employment/unemployment data• https://www.pnc.com/en/about-pnc/corporate-

responsibility/corporate-social-responsibility.html

http://www.ffiec.gov/cra/pdf/2010-4903.pdf

http://www.ffiec.gov/cra/examinations.htm

http://www.ffiec.gov/

http://www.fdic.gov/

http://www.bls.gov/

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